34 REGIONAL REVIEW - AFRICA AND THE MIDDLE EAST SOUTH AFRICA: OPPORTUNITY KNOCKS REPORT OF THE EXECUTIVE BOARD HEINEKEN N.V. ANNUAL REPORT 2008 NIGERIA Consolidated beer volume Market share Market position 9.8 million hectolitres 67.1 per cent 1 Heineken operates in Nigeria through controlling stakes in Nigerian Breweries and Consolidated Breweries of Nigeria, and enjoys an estimated market share of 67 per cent. Combined volume grew 17 per cent. Revenue and EBIT (beia) grew in excess of 30 per cent, thanks to the combination of higher volume, an average 6.5 per cent price increase and the positive effect of cost control. Volumes of Star and Gulder in the mainstream segment experienced double-digit growth and the Heineken brand grew 60 per cent. Higher volumes were driven in part by the introduction of cans for several brands, and the introduction of new packaging for Amstel Malta and Legend. Nigerian Breweries installed a second canning line and can introductions for other brands are under way. The introduction of Fayrouz, a malt-based soft drink, is also proceeding according to plan, with total sales of 180,000 hectolitres (+40 per cent). EGYPT Consolidated beer volume Market share Market position 1.2 million hectolitres 92.7 per cent 1 The beer market showed another year of strong growth, increasing 8 per cent, driven by a growing tourist sector. Al Ahram performed well, significantly increasing EBIT (beia), driven by higher beer volumes, better pricing and rigorous cost cutting. The Heineken brand grew 28 per cent, whilst the Sakara brand, which is particularly strong in tourist areas, also reported good growth. The national mainstream brand, Stella, developed well after its earlier re-launch. Africa and the Middle East is Heineken's fastest-growing region with both mature and developing beer markets contributing to growth. South Africa is one of the region's largest beer markets and has a fast-growing premium segment driven by economic growth and the emergence of an influential middle-class consumer. To capitalise on this growth, in 2004, Heineken established a joint venture with Diageo and Namibia Breweries, to form the joint marketing and distribution company brandhouse. The business has grown rapidly alongside the growth of the Heineken brand. To further build its presence in this important beer market, in 2007, Heineken regained control of the Amstel brand - the country's leading premium beer - and immediately set about creating a new route to market. Initially, the brand would be brewed by traditional Amstel brewers in Europe, imported and sold through brandhouse. At the same time, Heineken announced its decision to invest in building a new brewery. The brewery is a joint venture, 75 per cent owned by Heineken, 25 per cent by Diageo and is on schedule to be operational towards the end of 2009. The initial capacity of 3 million hectolitres has the built-in flexibility to expand as demand for the portfolio of beer brands increases. The 80-hectare site, located south-east of Johannesburg, will comprise production buildinc s and cool cellars, as well as a bottling and distribution warehouse. When operational, the brewery will create around 225 permanent new jobs at all levels as well as a considerable number of outsourcing opportunities for local suppliers. This reflects our commitment to invest in and work with the communities and markets in which we operate.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2008 | | pagina 38